General Information

The costs of employee tobacco use to the employer are significant. Direct costs to the employer include healthcare costs associated with tobacco use. Indirect costs include lost productivity, absenteeism and recruitment and retraining costs resulting from death and disability related to tobacco use.

Tobacco-free workplaces can enhance productivity in two ways: by reducing the effects of secondhand smoke (SHS) on nonsmokers and by reducing excess smoking-related absenteeism among smokers who are motivated to quit as a result of the tobacco-free policy. Especially for small businesses that have employees who handle a variety of tasks, productivity can be greatly increased by reduced absenteeism.

A smoker who quits could save employers an estimated $960 in excess illness costs each year. Persons who quit smoking before age 65 are estimated to save from 40 percent to 67 percent of the lifetime excess medical costs of persons who continue to smoke.

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